Contactless technology will become mainstream for payment card transactions, according to a new study completed by Javelin Strategy & Research. The firm’s report predicts that the promotion of non-network payment products will drive acceptance, thwart competition and pave the way for mobile payments.

“Tap-and-go contactless payments will pave the way for cell phones and handheld computers to become ‘electronic wallets,’ packed with consumers’ payment and merchant cards, coupon offers, even medical records, family pictures and more,” said James, Van Dyke, Javelin’s founder and president. “But consumers won’t benefit until the primary players – card networks, financial institutions, mobile carriers, merchants and handset manufacturers – work together toward a unified, simple solution that lets everyone win.”

Javelin’s latest research shows that progress is slowed because there isn’t enough incentive for merchants and wireless carriers to make essential investments that will enable contactless infrastructure development and the evolution to NFC-based (near field communications) mobile payments. If industry-wide cooperation occurs, Javelin’s projects that 57 million consumers will be using chip-embedded credit cards to make contactless payments by 2013, which is more than twice that of 2008 and will be bolstered primarily by expansion of contactless products into gift cards and private label cards.